Authority For Advance Ruling


Admits application filed before Sec 143(2) notice; Mere return filing not bar u/s 245R(2) 

Mere filing of tax return not a bar u/s 245R(2) to admit AAR application; Only when notice for scrutiny assessment u/s 143(2) is issued, question raised in AAR application considered as pending for ad...View More

TV show line production services amount to 'work'; Sec 195 TDS not applicable 

Payment by Indian production house to Argentinean entity for line production services not liable to TDS u/s 195; Services of providing technical crew, production crew and technical equipment for shoot...View More

Foreign university an educational institution, payments covered by FTS exclusion under treaty 

Payments by applicant to INSEAD, a Singapore based educational institution, towards teaching services not taxable; INSEAD had no PE in India; Payments fall in the exclusive clause of Article 12(5)(c) ...View More

Explains Sec. 245R(2) bar; rejects application as transaction reported in return 

Rejects application for ruling on issues already pending before IT authorities; Mere filling of return creates no bar, unless question raised in such application is an issue in return filed; Authority...View More

Can't perpetrate earlier wrong of AAR based on 'negative equality' 

Earlier wrong (by earlier AAR bench ) can't be a basis for committing same mistake again; Party can't strengthen its case based on concept of "negative inequality"; It would not be setting a wrong rig...View More

No re-framing of issues on Rule 19 application sans 'greater clarity'/convenience' 

AAR cannot determine tax liability of person other than applicant; Though earlier AAR bench directed re-consideration of certain issues on Rule 19 application, Authority not allowed to re-frame questi...View More

Payment for use of telecommunication capacity taxable as royalty, not capital receipts

Payment for use of undersea and territorial telecommunication cable capacity taxable in India; Transfer of part capacity for use by applicant does not amount to transfer of capital assets, as only res...View More

"Hazardous to rule" on merits without basic contractual agreements, Declines Dishnet ruling 

AAR admitted application even though similar / almost identical application pending before them in applicant's own case; However, declined to rule on questions formulated due to non-production of the ...View More

Satyam's class action suit settlement payment has India 'source', taxable as IOS

Settlement amounts payable under US class action suit by Indian co and Indian and foreign arms of auditor, constitute Settlement Fund’s income; Title passed to Settlement Fund in US, once amount...View More

Recalls favourable ruling on offshore supplies due to mistake apparent from record 

AAR calls back its earlier ruling in CTCI Overseas Corporation case treating offshore supplies as not taxable; Earlier ruling did not consider impact of its finding that consortium was assessable as A...View More